Change orders can be tricky if not handled correctly. At GS Flook, Inc we always take pictures and notify the homeowner immediately when something major is brought up causing for a change order. Unless there is an immediate safety concern we do not move forward with any change order item until the homeowner has signed off on the added work at the agreed upon costs.
The other reason for a change order would be when a customer changes the scope of work after a signed contract has been established. In this case we would either give an upfront cost to make the changes or we would have a form signed authorizing for a time and material bill to achieve the changed scope of work.
The charge of the change order is in relation with the change order by itself and also the effect of the change on the order of other work that needs to be put on hold. If the change is basic, the cost is basic, but the larger the change order the larger it would effect other work in process and in relation to that order.
Time and materials for change orders approved by customers
In my business, I will charge the cost of the change plus a multiplier that covers my profit, overhead and any other costs that a change creates for my business.
Change orders can be a little tricky if you have not properly handled.
When something not in the original contract arises and it must be handled we document it, and write it up as a change order estimate and give the owner the option to fix what was encountered or not.
Once the owner signs off on it then once the fix or additional work is completed they get a change order invoice which is ultimately either added onto their final bill or they can pay as it comes.